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Your Money

Christine Romans breaks down the financial news of the week.

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Uganda 6, Arizona 6, Pradaxa 5, Usaa 3, Apple 3, Abreva 3, Russia 3, Us 3, Washington 3, Hollywood 3, Dandridge 2, Samuel Burke 2, Oscar 2, Plato 2, John Berman 2, U.s. 2, Campbell 2, Christine Romans 2, Christine 2, Coca-cola 1,
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  CNN    Your Money    Christine Romans breaks down  
   the financial news of the week.  

    March 1, 2014
    6:30 - 7:01am PST  

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money," it is tax time. are you paying too much or more so the rich can get the breaks? >> christine romans and "your money" starts right now. >> swiss bankers under fire for helping clients evade the irs. i'm christine romans. this is "your money." maybe the 1% really are under attack. this week, top executives from credit suisse hauled before a senate committee. they blamed rogue bankers for helping hide $12 billion from uncle sam. some bank employees are pushing back saying tax evasion was a business strategy. not helping credit suisse, but the top brass will not reveal the rich, secret american clients. >> the banking secrecy probation prohibits us from furnishing any
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client names. >> any real idea that the government of switzerland is cooperating with us is a joke, right? if we get 22 names. >> it is not just credit suisse, but 13 other banks for helping clients evade taxes. what about evading taxes the old fashion way through legal loopholes. house ways and means committee chairman revealed his reform plan. it would lower tax rates for everyone, but impose a surcharge on the rich and scrap the so-called carried interest loopho loophole worth billions. is the game really changing for the 1%? john avalon is editor in chief for the daily beast. john, the credit suisse
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allegations out of a spy novel. wrapped around a woman to get an elevator secretly operated by bankers? the rich always will they find way to get out of taxes or are those days coming to an end? >> it is like a james bond novel, no question. the rich will always try to find a way to reduce their tax burden. that is the privilege of being rich. it is part of the business strategy. the problem is technology makes transparency difficult to hide money. you cannot hide money in a safety deposit box. the technology makes it tougher to do. >> steven, the republican, proposing higher taxes on the rich. taking an axe to the break. has hell frozen over, my friend?
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>> i agree with what you and john are saying. i hate tax shelters and loopholes. you know what is exciting about what chairman camp came out with this week and i hope this could be something to rally behind. get rid of the loopholes and the expensive tax lawyers and accountants that find ways for people to get around paying their quote fair share. when we did that back in 1986, that is the last time, christine, we cleaned the stables of the tax system. because you closed a lot of the loopholes, the rich paid a higher share of the taxes. they paid more taxes. this is a good way to get more money out of rich people and make the tax system more pro growth and make it fair. i was looking at polling, christine, the one thing that americans want from the tax system is fairness. i think a kind of flatter system without loopholes is fair to all americans. >> oh, it would be easy.
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tax reform is so easy. john, the rate is now up. capital gains rate is up. higher medicare taxes. that is coming for rich people. limits on deductions. how much more do liberals want? >> there is a reality behind every stereotype. some see taxation as a positive good. i don't think it represents the fast majority of congress. it should have bipartisan support. both talked about reform. the fact it is being called doa, the large loophole that made the outrage, that is a problem. >> stephen, it is not just the rich, the survey this week got my attention. 12% of americans say it is okay to cheat on your taxes. another study finds 26 of the most profitable u.s. corporat n
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corporations paid little or no income tax from 2008 to 2012. is tax evasion as normal as apple pie? >> that is something that is taking advantage of them. evasion is skirting the tax laws. this is the problem i have with the system. americans spend so much money, i think, close to $200 billion a year trying to find the loopholes. it is an unproductive activity. think of hiring the lawyers to make america more efficient. i really like the idea of closing the loopholes. john was right. i would add one thing, you have a beehive of special interests in washington, d.c. where i live. they will fight this thing to the tooth. the power in washington, guys, emanates from the tax code. >> no question about that. you talk about getting rid of the mortgage interest deduction
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or capping it for wealthy americans and real estate industry goes crazy. every one of the loopholes and every deduction and every little cookie in the tax code is fought for. thank you, guys. one of the world's largest bitcoin exchange files for bankruptcy. give me 60 seconds on the clock. it's money time. >> bitcoin. trading web site taken off line this week. it could mean the loss of more than $400 million of bitcoins. the collapse spooking investors and threatening the digital currency. the tesla model s is the top rated car for 2014. the stock is up about 70% this year. be aware. netflix spoofs in this ad. the plan to deliver packages to
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your door with small unmanned aircraft. would you eat this for breakfast? taco bell taking a run for mcdonald's with the breakfast menu. available until 11:00 a.m. the most important meal of the day, profitable and a new front in the fast food wars. and paula deen is opening a restaurant in east tennessee this summer. her first venture since her sponsors dumped her in droves after admitting using a racial slur. you could be paying for obamacare on your restaurant tab. dines in florida restaurants gnnow see this extra charge on their bill. it helps cover the cost of insuring full-time employees. and gay rights in arizona. are companying waving the rainbow flag just to make some green? that's next. e, abreva can heal a cold sore
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from sochi to uganda to arizona, as the fight over gay rights intensifies, some of the world's biggest brands are pulled into the fray. big advertisers like coca-cola and mcdonald's and visa face an internet hate storm for sponsoring the olympics there. the sb 1062 would give the businesses the rights to refuse service to gays and lesbian on rights of religious freedoms. the host committee for next year's super bowl which will be played in arizona, the arizona governor jan brewer vetoed the
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bill. virgin group chairman richard branson says officials from uganda asked him to do business in the country. he is now calling for a boycott. >> my initial reaction is i didn't want to do business with uganda. i felt the country is giving money to uganda should withdrawal those moneys. i would rather spend that money in countries that treat their people decently. >> i want to bring in richard sacarities. john berman is my cohost. is this a good thing for them to stand up on arizona? >> i think more and more countries do really care about gay rights because they see that in order to attract the top talent, they have to support equality for everybody who works for them.
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>> this is a business proposition for them? >> i think it is motivated by business. there are a lot of things emerging around this issue. each one of these issues, russia, uganda, arizona, we all have to look at separately what was going on. ultimately, i think companies will make a business decision. >> arizona was different because it was at home. russia, you know, some of these companies paid $100 million to be sponsors. they did not stand up and say we don't like the way you do business. >> this question goes back thou thousands of years. plato. i'm not sure it matters. if it is good for the consequences here, if the businesses are doing it just because of the bottom line, it may not matter. society moved so far along, it
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may not effect them. if you are a supporter of gay rights, you may not matter. >> say gay rights are part of human rights. you have apple saying we don't think we like what is going on in arizona. yet, apple products are made where -- >> i don't think it is a clear line yet. i think a clearer line is emerging for apple. a company like apple or other tech companies, google, they are considered progressive. their employees are considered aggressive. a lot of tech companies, in washington state, when they introduced marriage equality. tech companies played a big role in helping usher that in. if it is in your back yard and matters to you as a company, i think companies will play increasingly big roles. some of the old line companies
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who do business globally will have a challenge. they have policies for the u.s. employees which prohibit discrimination. they did not want to be seen as causing trouble for the ioc. the ioc was their partner. >> and their big international far flung multinational companies. >> it is one thing when it effects the boiler room, but also their own talent. people they are hiring. when people go into the stores and start to stop buying their products because of where they may make them, i think that is where you start seeing action. i don't see that happening yet. the manufacturing goods with iphones. i don't think consumers care where it is made. >> as public opinion shifts, more companies will act. >> in uganda, the public opinion is not shifting yet. it is almost unbelievable the polar opposites they are.
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thanks, guys. richard and john berman quoting plato. show off. coming up, race and the oscars. >> when a black actor wins an oscar or is nominated, i think hollywood doesn't know what to do with them. >> why this year's academy awards may be different. ther ® e they're approved for up to 30 nights of continuous wear. ask your doctor about safety information as serious eye problems may occur. visit airoptix.com for a free one-month trial. how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going to have to rethink this thing. it's hard to imagine how much we'll need for a retirement that could last 30 years or more. so maybe we need to approach things differently, if we want to be ready for a longer retirement. ♪
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tomorrow night is the 86th academy awards, but this year's oscars are entirely different. zain asher joins us. >> this year is unprecedented because you have a black actor or director basically represented in every major category but it's not just about critical acclaim. it's also about box office. movies like 12 years a slave and "the butler" cost less than $30 million to make but have earned back well over $100 million. as you know, my brother played
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the lead in "12 years a slave" but i wanted to see just how much things have changed for black actors in hollywood and what challenges still remain. she was the first black woman to be nominated for an academy award for best actress. refusing to be typecast, dorothy dandridge vowed never to play a slave on tv. years later, she was dead of a drug overdose with little more than $2 to her name. >> when a black actor wins an oscar or is nominated, in my opinion, i think hollywood is sometimes not knowing what to do with them because the path isn't clear. >> reporter: of the nearly 3,000 oscars that have been awarded since 1929, fewer than 30 have been given to people of color. many of them for roles based on true stories, therefore could never have been played by white actors anyway. >> not likely leonardo dicaprio
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could play nelson mandela. >> one of the ways black people play the lead where there is no competition. >> reporter: he played louis gaines in "the butler." pam williams, one of the producers, says that some investors refused to fund it unless she gave the white actors bigger roles. >> one potential investor asked could we give the butler a white best friend. i don't think the investors we went to were racist when they said these things. i think again they buy into the myth that is white people want to see white people onscreen so how can we put more of them into a black movie to make it more acceptable. >> reporter: and more marketable. according to rent track, only five predominantly black movies have made over $100 million domestically. then there's the issue of audience. african-americans make up just 11% of frequent movie goers while white americans make up
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56%. >> there are a lot of movies aimed at a specific audience and don't necessarily try to reach out to a broad audience so i think that crossover appeal is important. >> you know, with "the butler" we started out with a predominantly black audience and in the second week in the box office, it shifted that there were more white people going to see the film. >> reporter: movie critics say the shortage of african-american roles that dandridge witnessed in the '50s is still a problem today. >> until black people are willing to invest their own money, we'll have to settle for what we get. >> a role that ryan gosling could play, i don't see why i shouldn't be considered for if race isn't an issue. >> as david mentioned it really is all about improving the types of roles that black actors are offered beyond just, say, the sidekick. i think if dandridge was looking down on hollywood, she would be impressed that things have improved but there is still work to be done. >> when you think of how far we've come since those days. like you say, how much work is
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still to be done. it will be a wonderful, wonderful event no matter what on sunday night. thanks so much. good luck to you. coming up, the bizarre, the changing face of facebook. an industry giant's hanging on for dear life. samuel burke delivers the tech oscars. the envelope, please. [ female announcer ] we'll cook all day today, but we're not staying in the kitchen. just start the slow cooker, add meat and pour in campbell's slow cooker sauce. by the time you get home, dinner is practically done. and absolutely delicious. everyone is cooking with new campbell's slow cooker sauces. chalky... not chalky. temporary... 24 hour. lots of tablets... one pill. you decide. prevent acid with prevacid 24hr. healthy diets are hard on your teeth. the truth is a lot of healthy food choices are still high in acidic content. if your enamel is exposed to acid and is in a softened state
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responsibility. what's your policy? hot breakfast options. hampton, enjoy our free you did a great job. it looks good! then fuel up with up to 9,000 hhonors bonus points on a long weekend stay. make every stay more rewarding and feel the hamptonality. 3,000 miles from the red carpet but in full oscar spirit, cnn technology correspondent samuel burke is here. the big question, who are you wearing? >> well, it's retail. so very, very cheap on your money. it used to be hollywood that got all the money and attention in california, now it's a different city. silicon valley getting the spotlight. it's time for the glitz, the glamour, the red carpet. we take out our tuxes and salute the stars of the small screen in our very own tech version of the oscars. our oscar for best
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cinematographey goes to vine. who needs a three hour marathon like the wolf of wall street. sometimes a short micromovie says it perfectly. instead of wolves on wall street, on vine, you also get way cuter animals. best animation, candy crush. no flappy bird flame-out here. parent company king is staying in the game and filing for what could be one of 2014's most closely watched social media ipos. but this crush could be fleeting without a sweet sequel. the lifetime achievement award for industry best goes to mark zuckerberg. >> pretty cool milestone in facebook. >> sure, he's under 30 but facebook just hit ten. that's senior citizen status in the social media world. aging facebook is looking for new blood like whatsapp to stay on top. best ongoing drama, blackberry, clinging to life but for how long?
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once blackberry was a pioneer in mobile instant messaging, then came whatsapp, instagram, snap-chat, even alicia keys jumped ship as if she was on fire. still, shares are up about 38% this year. can blackberry finally find a buyer? now for our big awards. best actor, jeff bezos. he wowed them on "60 minutes" promising the golden age of the amazon drone delivery to doorsteps but sorry, customers, no drones for you. not for years yet. we'll see if he can back up his bravura performance with real airborne action. best actress, yahoo! company marissa meyer, saleswoman extraordinaire. she is keeping a brave face as ad revenue withers away. despite headline-grabbing hires and flashy new video channels, critics say this silicon valley honeymoon is way over.
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now our award for best picture, "gravity" or in this case, defying gravity. tech stocks are hitting 14 year highs. mobile deals are eye-popping. and valuations are soaring higher than clooney and bullock. will the tech party come down to earth or will the wall street buyers club continue? >> samuel, very clever. i have my money on sandra bullock for "gravity" for best actress. one more for you. award for the best horror film. the envelope, please. we have hack attack. want to talk scary? who was the bigger spy, your e-mail provider or the nsa? hackers trying to steal your identity, even getting into baby monitors to peer into your child's home, tvs that watch you back, avert your eyes if you want but your digital life is playing out in front of a huge audience. best horror film goes to hack attack. >> best dressed? christine romans. >> flattery will get you everywhere. nice to see you. very clever piece. thank you. thank you for starting your
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saturday smart. coming up on a brand new "your money" at 2:00 p.m. eastern, bulls, bears and black swans. the three key wards in investing today. why these creatures matter to your money. that's coming up at 2:00 p.m. eastern. first, "cnn newsroom" starts right now. so glad to have you with us. i'm christie paul. >> i'm victor blackwell. it is 10:00 in the east, 7:00 on the west coast. you are in the "cnn newsroom." we are beginning this morning with breaking news out of russia. we have a live look here for you at pictures from the russian parliament. it is just unanimously approved, president vladimir putin's request to send russian forces into ukraine. >> want to get the latest from cnn's frederick pleitgen in moscow. fred, what are you hearing? >> reporter: very significant vote that happened there in the upper house of russian parliament. the vote as you said was